Ohio's Medical Marijuana Dispensaries Will Soon Change Their Shingle And Include Recreational Weed Sales As $1B Program Moves Forward

It's been seven months since Ohioans overwhelmingly voted to approve Issue 2, the initiative that legalized adult-use marijuana. While the law went into effect in December 2023, retails sales did not, could not, begin immediately due to regulatory requirements.

Things Are Finally Moving

Ohio's medical marijuana dispensaries are now in the process of obtaining new licenses that will allow them to sell recreational cannabis. These dual-use licenses – only available to medical marijuana license holders – are being processed by the Ohio Division of Cannabis Control on a first-come, first-served basis.

The application process opened on June 7 and, as of last Friday, 219 applications were filed by shop owners hoping to open their doors to all adults across Ohio.

Produce It First And They Will Come, Be Patient

The Ohio Department of Commerce's public information officer Jamie Crawford said that eight facilities, including testing labs, cultivators and processors have already qualified for provisional licenses. They are being prioritized over opening cannabis dispensaries so the industry will be prepared to the meet demand when sales finally do begin.

That said, Ohio is expecting at least 130 new shops to open in the coming months as the Cannabis Control processes the influx of applications from wanna-be recreational sellers.

And did we mention that Ohio's weed industry could generate $1 billion annually by serving its estimated one million monthly users while also creating 3,300 full time jobs in the first year?

An Ohio State University analysis suggested that legal cannabis could potentially generate between $276.2 million and $403.6 million in annual tax revenue. Another study done by Columbus-based Scioto Analysis concurred, noting that the extra revenue legal cannabis would produce with its 10% excise tax and 5.75% sales tax would provide positive spillovers into the state’s social equity and substance abuse programs.

Not Everyone Wants In

Then there are the towns and cities that are not interested in the above revenue. While none of Ohio’s biggest cities have enacted bans, at least 54 smaller cities and counties (mostly suburbs) have already made it clear they're opting out.

Some areas’ stated purpose is to preserve public health or safety, although OSU's Moritz College noted that 33 mentioned a desire to wait for state regulators finish establishing the rules for the recreational program.

No doubt Ohio will be on the agenda at the upcoming Benzinga Cannabis Capital Conference in Chicago this Oct. 8-9. Join us to get more insight into what the wave of weed legalization means for the future of the industry. Hear directly from top executives, investors, advocates and policymakers. Get your tickets now before prices surge by following this link.

Now read: Medical Cannabis Packaging Market Projected To Reach $117.2B By 2032 Amid Sustainability Push

Photo: Shutterstock